DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

DEBT OBLIGATIONS

DEBT OBLIGATIONS

Debt obligations consist of the following (dollars in thousands):

	December 31,
	2019		2018
Mortgages payable	$	134,038	$	139,040
Junior subordinated notes	37,400		37,400
Deferred loan costs	(1,160)		(1,451)
Total debt obligations	$	170,278	$	174,989

NOTE 8—DEBT OBLIGATIONS (Continued)

At December 31, 2019, $134,038,000 of mortgage debt is outstanding on the Company's eight multi-family properties and one commercial property with a weighted average interest rate of 4.15% and a weighted average remaining term to maturity of 5.4 years. Scheduled principal repayments for the next five years and thereafter are as follows (dollars in thousands):

Year Ending December 31,	Scheduled Principal Payments
2020	$	3,040
2021	17,274
2022	62,545
2023	1,270
2024	1,316
Thereafter	48,593
	$	134,038

The Company incurred the following mortgage debt in connection with the purchase of our partners' interests in the years ended December 31 (dollars in thousands):

2019

Location	Acquisition Date	Mortgage balance at acquisition		Interest Rate		Maturity Date
San Marcos, TX	10/4/2019	$	17,158	4.42	%	October 2025

2018

Location	Acquisition Date	Mortgage balance at acquisition		Interest Rate	Maturity Date
Fredricksburg, VA	5/29/2018	26,755		3.68%	February 2027
Fredricksburg, VA - supplemental	5/29/2018	2,208		4.84%	February 2027
Houston, TX	12/21/2018	11,216		4.07%	August 2021
Houston, TX - supplemental	12/21/2018	3,708		4.94%	August 2021
		$	43,887

Credit Facility

The Company entered into a credit facility dated April 18, 2019, as subsequently amended, with an affiliate of Valley National Bank. The facility allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $10,000,000 to facilitate the acquisition of multi-family properties, and is secured by the cash available in certain cash accounts maintained by the Company at Valley National Bank. The facility matures April 2021 and bears an adjustable interest rate of 50 basis points over the prime rate, with a floor of 5%. The interest rate in effect as of December 31, 2019 is 5.5%. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and maximum amount then available under the facility.

At December 31, 2019, there was no outstanding balance on the facility. Interest expense for the year ended December 31, 2019, which includes amortization of deferred costs, was $357,000.

NOTE 8—DEBT OBLIGATIONS (Continued)

Subsequent to December 31, 2019, the facility was amended to allow for the use of the facility for working capital (including dividend payments) and operating expenses.

Junior Subordinated Notes

At December 31, 2019 and 2018, the outstanding principal balance of the Company's junior subordinated notes was$37,400,000 before deferred financing costs of $337,000 and $357,000, respectively. The interest rate on the outstanding balance resets quarterly and is based on three month LIBOR + 2.00% The rate in effect at December 31, 2019 is 3.94%. The notes mature April 30, 2036.

The notes require interest only payments through the maturity date, at which time repayment of all outstanding principal and unpaid interest is due. Interest expense for the years ended December 31, 2019 and 2018, which includes amortization of deferred costs, was $1,711,000 and $1,584,000, respectively.